‘Shrinkflation’ is becoming the newest retail buzzword as brands avoid raising prices by reducing product sizes or volumes. It started with packaged goods but other sectors are likely to follow.
FINANCE
“Marketplace demand continues to significantly exceed available inventory supply.” – John Donahoe, CEO, Nike
Next (UK) has warned that staff shortages, as well as disruption from the war in Ukraine, would fuel an 8% rise in its prices this autumn.
Poshmark (USA) said that Q4 revenues rose 22% year-on-year to $84.2 million. Gross merchandise value grew 27% year over year to $490.8 million.
- Net loss widened to $14.8 million from $3.2 million a year ago.
- Active buyers rose 17% year over year to 7.6 million.
Nike (USA) reported net income for the three-month period ended Feb. 28 of $1.4 billion, inched down from $1.45 billion a year ago.
- Sales rose 5% to $10.87 billion.
LL Bean (USA) said 2021 net revenue rose 14% year-on-year to $1.8 billion. The privately held company did not disclose earning data.
- The company reported record demand for men’s and women’s apparel.
- Launched 800 new products across all categories.
UK retailers Frasers Group, Marks & Spencer, Charles Tyrwhitt and Crew Clothing are all said to be eyeing an acquisition of TM Lewin (UK) after the shirt brand collapsed into administration this month for the second time in two years.
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RETAIL
Macy’s (USA) will open 37 new Backstage (the retailer’s off-price store concept) store-within-store locations nationwide in Q2 2022. Each shop will be between 11,000 to 16,000 square feet.
MARKETS
The UK government’s Spring Statement has forecast inflation to average 7.4% this year, much higher than previous estimates. However, unemployment will be lower and has already fallen to 3.9%.
UK retail sales fell by 0.3% last month after a 1.9% increase in January as consumers shifted more spending to dining out.
- Apparel sales rose 13%, while department stores reported a 1.3% rise, according to the Office for National Statistics.
US retail sales (excluding autos) were up just 0.2% in February, well below the expected 0.9%, and disappointing after the 4.9% increase in January, according to the Commerce Department.
- Prices rose 0.8% in February, according to Labor Department data.
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